This loan fund has been jointly developed by Norfolk’s commercial banks and the Economic Development Authority (EDA) in order to provide funds to effectively bridge the gap between bank lending restrictions and the bona fide capital requirements of Norfolk’s small businesses. It allows banks, in partnership with the City, to increase lending opportunities and provide for the stability and expansion of the local economy. The loan fund provides 20% funding of the project with the participating bank providing the remaining 80%. The bank’s 80% portion is priced at prime plus 1%. The EDA’s 20% portion is priced at prime.

Location:
500 East Main St. Suite 1500, Department of Development, Norfolk, VA 23510

Contact:
Economic Development Authority/Department of Development
Telephone: (757) 664-4338
Facsimile: (757) 664-4315

Hours of Operation:
8:00 AM – 5:00 PM, Monday – Friday (excluding holidays)

Requirements:

• Existing and expanding businesses in the City of Norfolk with special emphasis on areas that are economically distressed
• Annual sales of less than $1.0 million
• Credit criteria determined by Norfolk’s participating banks on a case by case basis

Procedure:

• Contact the Department of Development or any bank in Norfolk.
• Applications are submitted directly to the bank.
• The bank will process the applications.
• If approved, the bank will then submit the application to the Economic Development Authority for final processing.
• The credit decision remains the responsibility of the participating banks, based on their internal credit underwriting policies.

Fees:
None

Other:
The maximum loan amount is $100,000 with the bank’s 80% portion fully amortized in 5 years and EDA’s 20% portion fully amortized in the 6th year. This loan program cannot be used for speculative or start up purposes, non-business investments, revolving credit lines or refinancing of loans from other lenders.

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